Turkish Firm Preps Maiden Hedge Fund

Jan 19 2010 | 9:19am ET

Istanbul-based asset management firm Kronos Investment Advisory is aiming to capture the upswing in the Turkey’s equity market with a new market neutral hedge fund.

The new vehicle, which is slated to launch this quarter, combines various valuation, quality, liquidity and behavioral models to invest in a long portfolio of 100-150 stocks that are listed on the Istanbul Stock Exchange.

“Due to the current difficulty of shorting stocks, the product right now is long only employing beta-hedged shorting index futures to arrive at a target zero-beta portfolio with annual risk of approximately 10%,” Cenan Civi, founder, told FINalternatives.

Civi is bullish on the transitioning of the Turkish market from an emerging market to a developing one.

“Turkey’s inflation has come down from as high as 80% since the beginning of 2001 to single digits. Out of the 1,000 largest corporations in turkey, 850 of them are now listed on the stock market so we expect many IPOs. All of these factors go hand in hand and the Turkish market will grow in many multiples over the next decade,” he said.

Civi previously worked as an investment analyst in Chicago at the Kinship Trust Company, a large single family office that manages a portfolio of private equity funds, hedge funds and emerging markets equities.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of